Series 63 practice questionmediumGood faith defense and burden of proof
All of the following could serve as a defense against criminal prosecution under the USA EXCEPT:
- AThe agent made a reasonable and documented effort to determine the legality of the transaction.
- BThe violation was the result of clerical error, promptly corrected.
- CThe agent was unaware of the law but ignored compliance directives.✓ Correct answer
- DThe agent relied on inaccurate information from a reliable source but did not act recklessly.
Explanation
Why C — The agent was unaware of the law but ignored compliance directives.
Ignoring compliance warnings demonstrates willfulness, eliminating a good faith defense (Section 409). Innocent mistakes or reasonable reliance on misinformation can serve as a defense.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- A person convicted of willfully violating the Uniform Securities Act may be subject to:
- Which of the following best illustrates the primary difference in the standard of proof between civil and criminal…
- May securities misconduct under the Uniform Securities Act lead to both a civil or administrative enforcement…
- After learning of suspected criminal activity by an agent, the Administrator in State Q issues a cease and desist order…
- Which of the following is LEAST likely to result in criminal liability for a willful violation under the USA?
- An agent's willful violation was discovered in 2024, but the illegal act occurred in 2019. The statute of limitations…
- A junior banker is convicted under the USA for a willful securities violation. Which of the following statements about…
- Which of the following scenarios MOST clearly demonstrates 'willfulness' for criminal liability under the USA?